New York is making its largest climate investment ever, dedicating $1 billion in the FY 2026 budget to green energy, home electrification, EV infrastructure, and renewable projects.

Governor Kathy Hochul said the funding will help lower energy costs, boost reliability, and transition the state toward a more sustainable future.

The climate package will support:

• Home electrification programs to help families switch to electric heating, cooling, and appliances
• Thermal energy networks that reduce dependence on fossil fuels
• Expanded EV charging infrastructure statewide
• Renewable energy projects, including wind, solar, and battery storage

Grants and incentives will be available for homeowners, renters, municipalities, and businesses.

New York has committed to achieving 70% renewable electricity by 2030 under the Climate Leadership and Community Protection Act (CLCPA). However, state officials say stronger investments are needed to meet those targets and prevent energy shortages.

Governor Hochul called the 2025 plan a “bold step forward” to future-proof the economy and protect residents from volatile energy prices.

“We’re investing in affordability, reliability, and clean energy all at once,” Hochul said. “This is about making sure New Yorkers have safe, modern energy—and a healthier planet.”

The $1 billion will be distributed through existing agencies such as NYSERDA (New York State Energy Research and Development Authority), utilities, and direct rebate programs.

Examples include:

• Rebates for installing electric heat pumps and home energy upgrades
• Incentives for EV purchases and public charging station construction
• Grants for building thermal networks in neighborhoods and commercial centers

Additionally, low- and moderate-income households will have priority access to many programs.

State officials say the investment will:

• Lower long-term energy costs for homes and businesses
• Create thousands of clean energy jobs across New York
• Reduce greenhouse gas emissions from transportation and buildings
• Strengthen grid reliability against extreme weather events

Environmental groups praised the plan as a major move to align climate action with affordability.

Some energy experts have raised concerns about the pace of transition and the potential upfront costs for homeowners. Others argue that the plan should also include more investments in energy storage and transmission upgrades.

Despite some debate, New York’s $1 billion plan places it among the top states nationally investing in clean energy expansion.

Most climate programs will launch in late 2025 or early 2026. Residents can expect announcements from NYSERDA and local utilities about rebates, grant applications, and enrollment deadlines later this year.